The Reserve Bank of India (RBI)  maintained its benchmark repo rate unchanged at 5.5%. The decision was made at the six-member Monetary Policy Committee (MPC) held on August 4. In its August monetary policy statement, the RBI Governor, Sanjay Malhotra noted that the central bank would continue with its neutral stance as it is closely monitoring the evolving global changes, especially Trump’s imposition of tariffs on India. Malhotra said. “We are maintaining a close vigil on incoming data.” In June, the MPC announced a 50 basis points cut(BPS).

The Monetary Policy Committee (MPC) met from August 4 to 6 to assess the uncertainties sparked by U.S. President Donald Trump’s recent tariff threats on India. The Reserve Bank of India (RBI) maintained its GDP growth forecast at 6.5% for the 2026 fiscal year. Notably, the rupee depreciated by 16 paise on Tuesday, following Trump’s warning of steeper tariffs on Indian goods within 24 hours.